Retailers believe charging slotting fees forces manufacturers to test products before launch to reduce the number of poor product introductions.

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Retailers often charge slotting fees as a way to ensure that manufacturers have thoroughly tested their products before launching them in the market. The fees act as a deterrent for manufacturers who might be tempted to introduce untested or poorly researched products. By forcing manufacturers to pay fees, retailers can also better control their inventory and ensure that they only stock items that have a high likelihood of selling well. Therefore, charging slotting fees can help incentivize manufacturers to develop better products and reduce the number of poor product introductions.

Retailers Believe Charging Slotting Fees Forces Manufacturers to Test Products